For Paddle sellers

Paddle handles your taxes globally. Owelet handles showing you what you kept.

Paddle's merchant of record model bundles processing and tax compliance into one fee. Owelet connects to Paddle and shows your real net income per transaction automatically.

Connect your Paddle account -- free See how it works

Read-only OAuth · AES-256 encrypted · We never touch your money

The real numbers

Paddle's merchant of record model is genuinely valuable. They handle VAT, GST, sales tax, and payment processing across every country you sell into, so you never have to think about international tax compliance. You do not need to register for VAT in the EU, deal with UK Making Tax Digital, or track Australian GST. Paddle handles all of it. For SaaS founders and digital product sellers with a global customer base, this removes a significant operational burden.

The tradeoff is that the fee structure bundles multiple costs together in a way that makes your real effective rate less visible. Paddle's base fee is 5% plus $0.50 per transaction, similar to Lemon Squeezy. But additional charges can vary by payment method, currency, and whether a transaction triggers local tax handling in a high-compliance jurisdiction. What Paddle's own dashboard shows is your net payout -- the amount after Paddle's full fee stack has been applied.

That net payout number is accurate, but it does not break down the components. How much went to Paddle's platform fee? How much to payment processing? How much to tax that Paddle collected and remitted on your behalf? Without seeing the breakdown, you cannot tell whether your effective rate on European sales is different from your rate on US sales, or whether certain payment methods cost you more than others.

Owelet connects to Paddle's API and surfaces the gross_amount, fee_amount, and net_amount per transaction. You can see exactly what Paddle took on each sale, track how your effective rate varies across different markets, and understand your real margin per product across your catalog. If your European customers generate a higher effective rate than your US customers (due to currency conversion or local tax processing), Owelet shows that difference.

Paddle's payout terms are longer than most platforms. New sellers start with a 45-day payout term. After 6 months of consistent sales, this typically reduces to 30 days. By comparison, Stripe pays in 2 business days, Ko-fi pays instantly, and even Lemon Squeezy's 13-day hold is significantly shorter. For cash flow planning, the 45-day gap between earning and receiving is meaningful, especially for new sellers building their initial customer base.

The $100 minimum payout threshold also matters for sellers with lower or inconsistent volume. If your Paddle balance is below $100 on the monthly payout date, the funds carry over to the next month. For a new software product generating $60-80/month in its first few months, that could mean waiting 2 months between payouts. Lemon Squeezy's threshold is $50. Ko-fi and Buy Me a Coffee have no minimum at all.

Paddle's MOR model means you do not need to register for VAT in individual countries, which is a genuine advantage over Stripe (where tax compliance is your responsibility) and Gumroad (which does not handle tax at all). For a SaaS product selling to customers in 20+ countries, the alternative to Paddle or Lemon Squeezy is hiring a tax accountant or using a separate tax service. The 5% fee partly pays for this compliance work, and for many sellers it is well worth it.

For sellers using Paddle alongside Stripe, Gumroad, or other platforms, the different approaches to tax create an accounting nuance. Paddle's net payout has tax already removed. Stripe's charges include tax you collected but must remit yourself. Gumroad does not handle tax. When combining revenue across platforms, these different treatments need to be normalized. Owelet handles this normalization so your multi-platform dashboard shows consistent numbers regardless of how each platform treats tax.

Worked example

A $49 software license, domestic sale: approximately $2.45 + $0.50 = $2.95 in base fees. Effective rate: approximately 6%. You keep approximately $46.05. International sales may carry additional processing costs depending on payment method and currency. Owelet shows your actual per-transaction fee breakdown from Paddle's API -- not estimates.

How it works

How Owelet works for Paddle Sellers

Connect via read-only OAuth

Authorize Owelet in 60 seconds. We request read-only access to your Paddle transaction and payout data. We cannot create products, issue refunds, or modify your Paddle account.

Owelet pulls your transaction data

Every sale, subscription charge, and refund from Paddle's API with exact gross_amount, fee_amount, and net_amount per transaction. We track your effective rate across different markets and payment methods.

See your real net across all markets

Your dashboard shows true net income per transaction with market-level effective rate tracking. Compare your Paddle economics to any other connected platform and see your total take-home across everything.

Fee breakdown

What Paddle actually costs at every level

Monthly Revenue	Total Fees	You Keep	Effective Rate
$500	-$31.50	$468.50	6.3%
$1,000	-$62.50	$937.50	6.3%
$2,500	-$156.50	$2,343.50	6.3%
$5,000	-$312.50	$4,687.50	6.3%
$10,000	-$625	$9,375	6.3%

Assumes an average transaction of $40 (5% + $0.50 all-in). Additional charges may apply for certain payment methods, currencies, or high-compliance jurisdictions. International transactions may have a higher effective rate. Paddle's MOR model includes tax handling at no additional fee.

FAQ

Common questions from Paddle sellers

Paddle's base fee is 5% plus $0.50 per transaction, similar to Lemon Squeezy. Additional charges may apply depending on payment method, currency, and whether the transaction involves local tax handling. The fee is all-in with no separate processing charge.

Paddle acts as the seller of record for your products. They handle VAT, GST, sales tax collection and remittance across every country you sell into. You receive net payouts after taxes and fees. This eliminates your need to register for tax in individual countries.

Both charge 5% plus $0.50 per transaction as MOR with tax handling included. Paddle's payout terms are longer (45 days initially vs 13 days). Lemon Squeezy has a $50 minimum payout. The fee structure is nearly identical; the difference is in payout speed and feature set.

New Paddle sellers have a 45-day payout term. After 6 months of consistent sales, the term typically reduces to 30 days. Payouts are processed monthly. There is a $100 minimum payout threshold. Funds below the minimum carry over.

Paddle requires a minimum of $100 accumulated before processing a payout. If your balance is below $100 on the payout date, the funds carry over to the next month. This is higher than Lemon Squeezy's $50 minimum and Ko-fi's $0 minimum.

Yes. As merchant of record, Paddle handles VAT, GST, and sales tax collection and remittance for every country. Taxes are deducted before your payout. You do not need to register for tax in the EU, UK, Australia, or any other jurisdiction Paddle supports.

Yes. Owelet connects to Paddle via read-only OAuth in about 60 seconds. Your sales, subscriptions, and fee data sync automatically with exact net amounts per transaction from Paddle's API.

Owelet uses read-only OAuth access. We can view your transaction and payout data but cannot create products, issue refunds, or modify your Paddle configuration. OAuth tokens are encrypted with AES-256. Revoke access at any time.

Pricing